(Ecofin Agency) - The fund is raised about two years after a US$2.5 million financial support secured by the French startup. Thanks to the new financing, Qotto will pursue its expansion in West and East Africa.

French cleantech Qotto announced, Thursday (February 16), it has raised EUR8 million (US$8.5 million) in a Series A round led by Mauritian conglomerate IBL Group.

Several investors, both existing and new, also participated. The financial resource obtained will allow Qotto to enter the East African market and capture more markets in West Africa where it is already operating in Burkina Faso and Benin.  Qotto explains that the round (a mix of equity and debt financing) will also help grow its distribution network, improve its services and expand its geographical presence and reach 25,000 active customers by the end of 2023.

With the funding, Qotto, which provides access to electricity, internet, and financial services in rural and peri-urban areas, will launch operations in Côte d'Ivoire and East Africa. The company, founded in 2016, will also expand its presence in the off-grid solar energy space with new services.

The start-up, which claims more than 11,000 active customers by the end of 2022, will be able to rely on IBL Group's industrial and commercial experience in Africa. Indeed, apart from the capital investment, IBL Group also signed a partnership agreement with Qotto to deploy the cleantech startup's solar home systems in East African countries.

Chamberline Moko